Megan - one other question I meant to ask please. I see on

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Megan - one other question I meant to ask please. I see on most recent SS statement that if I became disabled "right now" that I would not have enough work credits to qualify for SSD. However, I am going to be applying for SSD for disability that occured in 2005. I worked full-time for 26 years preceding the disability, so if I read the SS website correctly, I have enough work credits to qualify for SSD. It is confusing to read on the current SS statement that you don't qualify if you became disabled right now; however, since the disabled was in 2005 and I worked and had earnings the preceding 5 out of 10 year period ending with the quarter your disability began, according to SS. Just making sure I am good to qualify for benefits based on date of disability, not that it has been 8 years since the disability and I had not yet filed for SSD. Hope this makes sense. and thank you.

You should be fine, because social security goes by the date of disability when determining whether or not you are eligible for benefits.

Customer:

ok, that is how I read it but wanted to make sure they didn't disqualify or penalize for not applying at the time of the disability.

Megan C :

No, they shouldn't.

Megan C :

Is there anything else I can help you with today? If not, please rate my response positive so that I may receive credit for assisting you further today

Customer:

ok, thanks. It spells it out pretty clearly in their booklet about "recent work test" and it fits the criteria, but it can be confusing. So you think not to worry about that?

Megan C :

I would not worry about that.

Customer:

ok.

Megan C :

Thanks. Anything else?

Customer:

I think I'm good. I appreciate your help. A lot of information to dig through on this topic.

Megan C :

Yes, I understand. If you need anything else, you know where to find me.

Customer:

I think most people apply for SSD right away and since we did not, and are just now getting ready to do so, I did not realize there would be these kinds of questions. You have answered them and I think I am fine with all that. I didn't think SS could disqualify based on applying years after the fact, but it certainly was a concern when I saw that on the recent statement.

Megan C :

Yes, I understand your concern about this. Now, they may deny you at first, but if you get a good SS attorney he will ensure you get your benefits. Don't worry if you are denied at first. a large percentage are even if they apply right away.

Customer:

Thanks for that... yes, I understand about possibly being denied being a good possibility at first, just based on the disability part. I wanted to make sure I understood everything regarding actually qualifying, which I do, and then add in the WCC settlement, which you helped me understand that impact, and it appears that it will not impact any benefits I would get. I have a recommendation for a 30+ SSD attorney and will consult with him before applying and enlist his help in doing so. Thanks for easing my mind.

Megan - sorry to be a pain, I am wondering if the specific language of lifetime expectancy is not used in a WCC lump sum settlement agreement, then SSD can use other methods to determine offset, which could be detrimental to the claimant. See below I found:

If no rate was specified in the settlement, the SSA would be free to use the state workers' comp maximum. If the state maximum is $370 a week ($1,603.33 a month), that alone exceeds the 80 percent rule and the claimant will lose $800 Social Security benefits for more than 12 months. ($20,000 at $1,603.33 a month=12.47 months.)

On the other hand, the claimant could have structured the workers' comp settlement at a payment rate of $140 a month for 142 months. The $800 a month Social Security benefit plus $140 a month offset for the lump-sum award does not exceed the maximum ($1,600), so no reduction in Social Security benefits would occur. The total savings to the claimant are almost $10,000. ($800 x l2.47 months = $9,976.)

Courts have upheld an SSA decision to apply either the rate used before settlement or a state's maximum workers' comp rate as within the discretion of the secretary of HHS.(11) Most cases that have challenged these decisions are found in favor of the secretary. Therefore, proper planning at the time of the workers' comp settlement is essential to achieve a favorablefa·vor·a·ble adj.1. Advantageous; helpful: favorable winds.

2. Encouraging; propitious: a favorable diagnosis.

3...... Click the link for more information. outcome for a claimant.

Case law demonstrates the pitfalls of inadequate planning of workers' comp settlements. Unplanned or inadequately specified settlements often give the SSA the discretion to adopt a proration Proration

A situation during a corporate action in which the available cash or shares are not sufficient to satisfy the offers tendered by shareholders. Therefore, a proportion of both cash and shares is granted for each offer tendered. that is less favorable to the claimant.

I will be doing a consult with an attorney. I was just trying to figure out if there would be an offset and if so, how much. Everything I read indicates that SSD will only use the lifetime expectancy if that language is contained in your settlement agreement. If not, then they can use prior WCC payment amount, from date of disability to age 65, so that effectively changes the offset to more than if you use life expectancy.

Thanks. In my experience, I have always seen that they use life expectency. That is why I gave the answer that I did.

If all you received is $60,000 you should still be in good shape, even if you don't use life expectency. Remember, your WC payment would need to be greater than $1,800 per month in order to make you subject to the offset. You're only offset if your WC plus SS is greater than 80% of your pre-disability pay. The offset will bring you down to 80% of your pay. So, worst case scenario you get $40,000 per year (if I remember correctly I'd have to go back to our original question).

ok, that makes sense. I was getting confused thinking they would use the weekly workers comp amount of $775 paid out back in 2005 before the settlement and divide that by 65,000 and come up with 20 months that SSD could be offset. That all seems so complicated.

if they use the 20 years between age 45 disabled and 65 retirement age - then i would be ok

Thanks for your follow up. Based on my interpretation, I think you are okay as well. Also, if your ss was offset for 20 months, you would still receive a current benefit. You haven't applied for several years.

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. OrvilleHesperia, California

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